Key Schwab Observation for Year Ending December 31, Market Value Allocation - PCRA vs. Core Offering 2

Transcription

1 The leading industry benchmark on participant investment activity within self-directed brokerage accounts for retirement plans Table of Contents: December 31, 2005 Key Schwab Observation for Year Ending December 31, 2005 Market Value Allocation - PCRA vs. Core Offering 2 Market Value Allocation - Asset Classes 3 Market Value Allocation - Mutual Funds 5 Net Asset Flow - Asset Classes 6 Net Asset Flow - All Investment Categories 7 Average Monthly Trades per Account 8 Average Number of Positions per Account Charles Schwab & Co., Inc., Member SIPC ( ) Page 1

2 Market Value Allocation - PCRA vs. Core Offering* ( As of Month End) 2005 CORE100% PCRA % 80% 70% 60% 50% 40% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 84% PCRA CORE 30% 20% 10% 0% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 16% *Data is based on SchwabPlan PCRA participants only (approximately 11,000 accounts). This chart illustrates the percent of participant assets in their PCRA account and their core holdings. Percentages are calculated as of each month end. Figures are based on PCRA participants with a minimum balance of $5,000 in their PCRA account. All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 2

3 Market Value Allocation - Asset Classes ( As of Month End) 2005 Equities 100% Fixed Incom Mutual Fun % 19% 20% 21% 20% 20% 19% 19% 19% 19% 18% 18% Cash & 90% Eq % 70% 60% 50% 47% 47% 47% 47% 47% 47% 48% 48% 48% 48% 48% 49% 40% 30% 20% 10% 0% 4% 3% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 29% 30% 29% 29% 29% 29% 30% 29% 29% 29% 30% 29% Equities Fixed Income Mutual Funds Cash & Equivalents This chart illustrates the percent of PCRA participant assets in each noted asset class as a percentage of total PCRA assets. Percentages are calculated as of month end. Money market mutual funds are classified under Cash & Equivalents. Figures are based on all PCRA participants with a minimum balance of $5,000 in their PCRA account (approximately 60,000 accounts). All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 3

4 Market Value Allocation - Mutual Funds ( As of Month End) 2005 Asset 40% Alloc Internationa 0.17 Large Cap Small 35% Cap Specialized Taxable Bo Other % 25% 20% 15% Asset Allocation Funds International Funds Large Cap Stock Funds Small Cap Stock Funds Specialized Funds Taxable Bond Funds Other 10% 5% 0% This chart illustrates the percent of PCRA participant assets in each mutual fund category, as classified by Morningstar Inc., as a percentage of total PCRA long-term mutual fund assets. Percentages are calculated as of each month end. Figures are based on all PCRA participants with a minimum balance of $5,000 in their PCRA account (approximately 60,000 accounts). Small cap funds are subject to greater volatility than those in other asset categories. International investments are subject to additional risks such as currency fluctuation, political instability and the potential for illiquid markets. Since sector funds focus investments on companies involved in a particular sector, the funds may involve a greater degree of risk than an investment in other mutual funds with greater diversification. All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 5

5 Net Asset Flow - Asset Classes 12 months ending December 31, Options Money Mar 1 Fixed Incom 7 Equities Mutual Fun 0.51 Mutual Funds 51.0% Equities 32.4% Fixed Income 15.7% Money Market Funds 1.1% Options -0.2% -10% 0% 10% 20% 30% 40% 50% 60% This chart illustrates the percent of total net flows within each asset class year to date, ending December 31, Net flow percentages are calculated by adding the purchases and sales amounts within each respective asset class and dividing by the total net flows over the period. Figures are based on all PCRA participants with a minimum balance of $5,000 in their PCRA account (approximately 60,000 accounts). All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 6

6 Net Asset Flow - All Investment Categories 12 months ending December 31, Equities - U MF - International Money Mar 1 MF - Large Cap Stock Funds Equities - M 7 MF - Other MF - Small 7 Cap Stock Funds Equities - M 8 Equities - Other Equities - F 0.02 Equities - C MF - Taxable Bond Equities - In MF - Specialized Equities - In Equities - Energy Equities - C Equities MF - H - Asset Allocation Funds MF - Asset Equities Health Care Equities - E Equities - Consumer Discretionary MF - Speci MF - TaxabEquities Info Technology Equities - O Equities Industrials MF - Small MF - Large Equities Consumer Staples MF - Intern Equities 3 - Financials 2.5% 2.5% 2.3% 2.2% 2.0% 3.5% 5.1% 4.9% 6.4% 6.4% 8.2% 8.5% 8.8% 14.3% Equities - Mutual Funds 1.8% MF - Other 1.7% Equities - Materials 1.7% Money Market Funds 1.1% Equities - Utilities 0.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% This chart illustrates the percent of total net flows within each investment category, as classified by Standard & Poor s and Morningstar, Inc., year to date, ending December 31,2005. Net flow percentages are calculated by adding the purchases and sales amounts within each respective investment category and dividing by the total net flows over the period. Figures are based on all PCRA participants with a minimum balance of $5,000 in their PCRA account (approximately 60,000 accounts). Small cap funds are subject to greater volatility than those in other asset categories. International investments are subject to additional risks such as currency fluctuation, political instability and the potential for illiquid markets. Since sector funds focus investments on companies involved in a particular sector, the funds may involve a greater degree of risk than an investment in other mutual funds with greater diversification. All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 7

7 Average Monthly Trades per Account (2005 Monthly) 2005 Equities Fixed Incom Mutual Fun Equities Fixed Income Mutual Funds Average number of trades per account is calculated by taking all trades for the month in each respective asset class and dividing by the total number of PCRA accounts at the end of the month. Figures are based on all PCRA participants with a minimum balance of $5,000 in their PCRA account (approximately 60,000 accounts). All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 8

8 Average Number of Positions per Account (2005 Monthly) 2005 Cash Equities Fixed Incom Mutual Fun Cash Equities Fixed Income Mutual Funds A position is defined as a holding in one investment vehicle. Figures are based on all PCRA participants with a minimum balance of $5,000 in their PCRA account (approximately 60,000 accounts). All data is for informational purposes only. Schwab does not guarantee the accuracy, timeliness or completeness of the information Charles Schwab & Co., Inc., Member SIPC ( ) Page 9